Rob Raffety

Although it appears that a national tax on soda pop might be too much for the American people to swallow, the prospect that consumers will soon have to pay even more for their favorite sweet and bubbly beverages remains quite real. After all, the feds are not the only ones thirsting for tax revenue. According to a recent report by the Center on Budget and Policy Priorities, 48 out of 50 state governments face budget shortfalls in 2010, with gaps totaling $166 billion. The outlook for 2011 is even worse, with cumulative shortfalls exceeding $350 billion. Thus, for states seeking a potentially palatable revenue source to refresh their depleted treasuries—Coke is it! So, too, are Pepsi, Gatorade, and Red Bull. (more)